Community Wind - Resources

Native Americans Breaking Trail for Green Power

“An overnight success that took eight years” is a description often applied to the first Native American owned utility-scale wind turbine by people involved in the project. Officially dedicated in May, the 170 ft 750 kW NEG Micon turbine now stands on a hill above the Rosebud Hotel and Casino in south central South Dakota on the Rosebud Sioux reservation. Patrick Spears (left), Robert Gough (right), Rosebud wind turbine (middle). Photo courtesy of Intertribal COUP.

Wind energy has long been an attractive possibility for tribal communities partly due to simple geography– tribal lands in North Dakota, South Dakota and other Great Plains states happen to include some of the best wind resource areas in the world. However, motivations for pursuing a wind project were much more complex for the Rosebud Sioux Tribe. Concerns about how electricity generation affects the health of the air, land, water and people, the growing threat of global climate change, and a deep-seated interest in expanding economic opportunities for community members played major roles. And this project is only the beginning. The Rosebud tribe purposefully experimented with models and the planning process for this project with the intention of gaining enough knowledge and experience to make future wind projects, bigger, more efficient and more profitable.

The suggestion that this project was almost deliberately made into a long, challenging process is not hard to believe considering that the original groundwork was laid as far back as 1994, the year the Rosebud Sioux established a Tribal Utility Commission (TUC) to expand their capacity to manage energy issues. At that time the most pressing issue was obtaining an allocation for hydropower electricity from the Western Area Power Administration. (WAPA is a power marketing administration within the U.S. Department of Energy charged with selling and transmitting electricity from federal hydroelectric power plants.). Part of the TUC’s job was to develop an integrated resource plan, which required studying all possible energy sources, both renewable and traditional. This lead to the installation of the first wind-monitoring tower to measure what the tribe already suspected was a promising wind resource. Rosebud turbine under construction. Photo Courtesy of Intertribal COUP.

As many Missouri River basin tribes were facing similar energy issues at that time, a coalition of northern Great Plains tribes chartered the Intertribal Council on Utility Policy (Intertribal COUP) to create a common forum for utility policy discussions. Over the next few years, Intertribal COUP focused on WAPA allocations, but also started exploring ways to integrate their own energy resources. Intertribal COUP and the Rosebud TUC began to grow their knowledge base by organizing and hosting a series of meetings and conferences to explore the feasibility of wind power and building connections with groups from other states with more wind experience.

During the process of learning about wind energy possibilities, the Rosebud TUC became a champion of bringing these opportunities home to the Rosebud reservation. Many members of the commission became tireless advocates for both the economic and environmental benefits of wind power. Particularly remembered are the contributions of the late Alex “Little Soldier” Lunderman, the first president of the utility commission for whom the turbine was named at the May dedication. Ronald Neiss, another former utility commission president, told Wind Powering America last year about Lunderman’s vision that continues to guide the commission today: “He believed we could use modern technology as well as our resources in a way that is compatible with our history, our philosophy, and our cultural and spiritual values. With the Rosebud Wind Project, we are trying to make his vision a reality by using the tremendous wind resource on the reservation in a good way.”

This first turbine is a demonstration project that's breaking trail for future, bigger projects.The current TUC President, Rod Bordeaux, sees the growing potential for tribal wind power as a positive direction for Great Plains Tribes, “ Energy has a steep learning curve, but people are beginning to understand where this is going. ”

By the late 1990s, it was clear that the Rosebud Sioux had an excellent wind resource, and an interest in using a clean, renewable, native natural resource to generate power. However, the question of how to finance a large wind energy venture remained. Part of that question was answered in 1999, when Rosebud was the only tribe to receive funding ($508,000, half the cost of the turbine) for a utility scale wind turbine in the Department of Energy’s first round of Tribal Renewable Energy Grants. Soon after receiving the DOE award, the tribe began negotiations with the Rural Utilities Service to borrow money for the rest of the project, which, at the time, had never worked with either tribes or renewable energy. (RUS is a branch of the U.S. Department of Agriculture that makes loans to rural utility service providers.) The effort paid off in 2002 when the Rosebud tribe secured a loan for the second half of the turbine installation costs and a little extra to set up some new wind monitoring stations.

While working on the financing, the TUC also began to tackle other hurdles such as obtaining permission to interconnect the turbine to the power grid and finding a market for the electricity. They used this process explore many markets that could also be viable for future, larger wind projects. Students and teachers gathered at the turbine dedication. Photo courtesy Clean Air- Cool Planet.Among the considerations: working with the owners of the transmission and distribution lines, plugging into the federal market for renewable energy, and the possibility of selling wind energy as premium green electricity.

The result of the extensive negotiations is a multi-faceted arrangement for selling and transmitting the wind turbine’s electricity (see chart). A long-term deal was made to provide electricity directly to the Rosebud Casino, but the contract allows the tribe flexibility to explore other options. For example, for the first few years (up to 5) Rosebud is providing "green power" to Ellsworth Air Force Base near Rapid City, SD by coordinating with Basin Electric Power Cooperative, WAPA, and Nebraska Public Power. The tribe is also working with NativeEnergy, a Vermont based company that agreed to buy the remaining lifetime output of green tags from the project. Consumer demand for cleaner electricity has driven the development of a market for the environmental attributes of wind-generated electricity (referred to as green tags) and NativeEnergy has tapped this market by selling green tags from the Rosebud turbine to thousands of individuals and environmentally minded companies such as Ben & Jerry’s Ice Cream, a Rolling Stones climate change concert and a recent Dave Matthews Band tour. A consumer buying green tags can think of it as way to offset pollution and greenhouse gas emissions associated with their own electricity use. 2003FallNews_chart.gif (62357 bytes)

Gough described this first wind turbine as a learning tool, that is “breaking trail” for more and bigger tribal wind energy projects. While recognizing the pioneering efforts of other Great Plains tribes in smaller scale wind power (such as Spirit Lake and Turtle Mountain in North Dakota, the Upper Sioux and White Earth Chippewa, and the Blackfeet in Montana), Patrick Spears, President of Intertribal COUP, said, “Rosebud has taken the lead among tribal nations of the northern plains in realizing the potential of large scale wind energy development. And this turbine is only step one, the next phase of Rosebud’s plan is a 30-50 MW project.”

Rosebud and Intertribal COUP have also joined in developing a road map for an 80 MW project to be distributed in clusters across eight Great Plains reservations. “This project would provide a way for a number of tribes to share the risks and benefits involved of a large wind project to capture the economies of scale necessary to be economically feasible and secure each reservation a place on the WAPA grid as a clean energy generator. Ten megawatts on each reservation would likely be absorbed on the local distribution system, and have little impact on an otherwise constrained transmission grid” noted Gough. To date, four Intertribal COUP tribes have begun the necessary planning and data collection to participate in this effort.

The incentive for Great Plains tribes to pursue wind power goes beyond the great promise of economic development. Wind is an opportunity for tribes to control their own energy resources and the impact of their energy use. Reservations are seen as permanent homelands for tribal communities, and the residents realize that depleting the natural resources is incompatible with that idea. “The Lakota people have always had great respect for the power of the wind,” said Spears, and now they can use that power to produce clean energy and economic development.

Other Resources * Western Area Power Administration * U.S. Department of Agriculture Rural Utilities Service * Basin Electric Power Cooperative * National Renewable Energy Laboratory: South Dakota Wind Map

WIND ENERGY News USDA Grants announced The first round of grant awards for the U.S. Department of Agriculture Renewable Energy Systems and Energy Efficiency Improvements Program was announced August 25, 2003. Over $21 million was awarded for 131 projects in 24 states. Minnesota lead all states with $4,678,632, followed by New York, Illinois, and Ohio. Many grants will support wind projects, including small residential-scale turbines, farmer-owned utility-scale turbines, and rural electric cooperative wind projects. For more information: www.windustry.org/resources/farmbill.htm.

Large farmer project wins bid In August, Great River Energy announced that it will begin contract negotiations for 100 MW of wind power with Trimont Area Wind Farm, LLC. Trimont Wind is a coalition of local citizens from the project area (south central Minnesota) that answered Great River Energy’s request for proposals to develop a renewable energy supply resource to be ready by 2005. It will be the largest locally owned wind project in the nation. According to GRE, the project was chosen for its competitive price, its access to transmission line interconnections, its location within the coop’s service territory, and its appeal as a locally owned project.

MN Community Wind Rebate The Minnesota Department of Commerce Energy Office announced a new Community Wind Rebate program available to non-taxable entities (such as schools, non-profit organizations, or government units) in Minnesota outside of the southwest portion of the state. Projects can receive rebates of up to $150,000 by applying before the November 13, 2003 deadline. For more information, visit www.windustry.org or contact Mike Taylor at 651-296-6830 or mike.taylor@state.mn.us

WINDUSTRY Updates WindProject Calculator The Windustry WindProject Calculator has been updated with new turbines and improved with a more user-friendly format. It is available at www.windustry.org/calculator.

Windustry Grows The Windustry staff expanded to include Wes Slaymaker who is taking on the role of Windustry Project Engineer. He is a certified professional engineer with more than three years experience developing wind energy projects in the Midwest. He brings a new level of practical and technical expertise to Windustry. Welcome Wes!

About WINDUSTRY Windustry is a non-profit organization that builds collaborations and provides technical support to create an understanding of wind energy opportunities for economic development. We are partnered with the Institute for Agriculture and Trade Policy. WIND FARMERS Network The Wind Farmers Network is now in development for landowners, communities and others interested in investing in wind energy to exchange information and experiences. Visit www.windustry.org/farmer or contact Windustry for more information or to join the network.

2002 Farm Bill Makes History with New Energy Title The 2002 Farm Bill’s Energy Title is being hailed as a victory for farmers, the rural economy and the environment. Title IX of the Farm Security and Rural Investment Act of 2002, approved by congress and signed by President Bush in May, provides $115 million to assist farmers and ranchers in developing renewable energy projects and making energy-efficiency improvements. Another $290 million will fund new biomass energy research, biodiesel fuel education and the existing Commodity Credit Corporation subsidy program for the production of biodiesel and ethanol, bringing the Energy Title’s totalFarmer harvesting the wind appropriations to $405 million through 2007.

The Energy Title is new territory for Federal farm legislation, reflecting the growing importance of farms in our nation’s energy system. A coalition of Midwestern farmer, environmental, and rural economic development groups, including Windustry, worked hard to frame the energy provisions and gather broad-based support. At his signing ceremony, President Bush acknowledged the growing importance of farms in the nation’s energy system, saying “Farming is the first industry of America - the industry that feeds us, the industry that clothes us, and the industry that increasingly provides more of our energy.”

The money allocated for clean energy in the farm bill could be a tremendous boost for farmers and rural communities interested in developing wind energy. Under the new bill, the United States Department of Agriculture (USDA) will have $115 million over five years to make low-interest loans, loan-guarantees and grants to farmers, ranchers, and rural small businesses to purchase and install renewable energy systems and make energy-efficiency improvements. The money will be available to those who demonstrate need under criteria to be established by the USDA. The grants cannot exceed 25 percent of the cost of a project, and a combined grant and loan or guarantee cannot exceed 50 percent of the cost of a project. The USDA will consider a variety of factors, including the type of renewable energy system, the quantity of energy likely to be generated, the environmental benefits, and the reproducibility of the system when determining the amount of a grant or loan.

The new legislation should help encourage wind projects in states like North and South Dakota where huge wind resources have barely begun to be developed. Herb Manig, Executive Vice President of the North Dakota Farm Bureau, said, “The Energy Title comes at a timely juncture as our nation's consumers are increasing their demand for "clean" forms of energy, and as our nation's farmers struggle with abundant crops and low market prices. Not only will it assist farmers with their own needs for energy efficiency, it can help farmers develop and market alternate forms of energy. It will help protect our environment, reduce our dependence on foreign oil, and bring greatly needed income to agricultural producers.”

Other sections of the farm bill, including the Rural Development Title and the Conservation Title, also have provisions that should prove to be beneficial to wind. The Conservation Reserve Program (CRP), a voluntary program for agricultural landowners that encourages land conservation, was amended to allow wind turbines and biomass harvesting on CRP lands. Wind projects will be subject to USDA approval based on site location and consistency with the soil, water and habitat goals of the CRP program.

Under the Rural Development Title, renewable energy systems were made eligible for grants under the Value-Added Grant Program and the Consolidation Farm and Development Act was amended to allow loans and loan guarantees for wind systems and methane digesters.

The Energy Title is a relatively small portion of the overall bill (it allocates $405 million over six years, while the full bill is estimated at $190 billion over ten years) and has not gain nearly as much attention as the increased crop subsidies and the conservation measures. However, it might be the bill’s most important provision for the future of American agriculture.

“The Energy Title is one of the strongest components of this bill. It builds on the stuff we’ve been working on, making the nation’s energy supply domestic, diverse, decentralized and renewable,” said Larry Mitchell, Chief Executive Office of the American Corn Growers Association. While the rest of the farm bill increases subsidies for traditional crops, the Energy Title creates an opportunity for farmers to diversify and supplement their incomes.

According to Tom Sloan, Vice Chair of House Utility Committee, Kansas House of Representatives, creating new sources of income for farmers also might help preserve family farms and the rural way of life. “Wind Power is an exciting new industry and if there is an annual income from wind turbines then it’s more incentive for the youngest generation to remain on or return to the farm - which really changes the demographics of rural counties.”

“The Energy Title establishes energy policy as an integral part of agricultural policy which will create a bigger market for farm-based energy that will benefit rural communities,” said David Benson, farmer and Nobles County Commissioner in Southwest Minnesota.

Windustry is looking forward to the speedy implementation of the Farm Bill and will work to ensure that the Energy Title provisions foster clean and economically advantageous renewable energy for rural communities and for the nation. You can follow the process on a new USDA website: www.usda.gov/farmbill.

Where is the Wind? The first step toward developing wind energy is finding where the best wind is. New wind resource maps are now available from Wind Powering America: www.windpowermaps.org/windmaps/states.asp

Links to new maps are also available from the Renewable Energy Atlas of the West project at: www.energyatlas.org. This project is working to compile information on wind, biomass, solar and geothermal resources from eleven western states into a single Geographic Information Systems (GIS) database. Progress on Capital Hill

Senate passes Renewable Portfolio Standard In April, the U.S. Senate passed an Energy Bill that includes a Renewable Portfolio Standard (RPS), a provision requiring ten percent of electricity generation in the United States to come from renewable sources by 2020. A national RPS is the single most powerful way to vastly expand the market for wind energy. The House energy bill passed last year does not contain an RPS and the two bills have yet to be reconciled.

Production Tax Credit In other good news for wind, congress renewed the Production Tax Credit (PTC) for wind energy in March as part of a long-delayed economic stimulus package. The inflation-adjusted 1.5 cent-per-kilowatt-hour tax credit for electricity generated with wind turbines was extended through 2003, allowing hundreds of wind projects to get back on track. The PTC is critical to making wind projects economically viable. A provision to extend the credit through 2006 is part of the energy bill passed by the Senate in April. A national RPS and a longer-term extension for the PTC are essential elements for growth and financial stability in the wind industry. Where do your state’s representatives stand on renewable energy development?

August 12-23, 2002 -- Wind Energy Workshop, Carbondale, Colorado. A hands-on workshop to learn everything from how to measure the wind to designing a system to doing an actual installation. For more information, contact Solar Energy International at www.solarenergy.org.

About Windustry Windustry builds collaborations and provides technical support to create an understanding of wind energy opportunities for economic development. Windustry is affiliated with the Institute for Agriculture and Trade Policy.

Windustry Evolves and Expands Windustry has doubled in size this spring with the hiring of a new Program Associate, Sarah Johnson. She is a former intern at Minnesotans for an Energy-Efficient Economy and holds a degree in geology from Carleton College in Northfield, Minnesota. Also, Windustry’s office has officially moved to the Institute for Agriculture and Trade Policy in Minneapolis. With this expansion, look for more frequent newsletters and updates to our website.

Wind Farmers Network The purpose of the Wind Farmers Network is to bring together a broad range of landowners, farmers and ranchers to exchange their experiences in wind development and educate others who would like to begin farming the wind. If you would like to join the network, please send your contact information and a brief sentence describing your wind energy interests to Windustry or join online at www.windustry.org/about/join.htm. Your information may be shared with other wind farmers within the network only. The network is currently under development.